Shares of InterGlobe Aviation soared 3 per cent in early trade on Monday, amid broader strength in select large-cap stocks, with investors showing confidence in IndiGo’s medium- to long-term growth prospects despite near-term operational challenges faced by the airline. Market participants said the stock saw healthy volumes as it extended gains after recent weakness.
The stock traded at ₹4,976.50 on the NSE at 11.58 am, hitting a high of ₹5,014 in early trade against the previous close of ₹4,860.50. It led the pack of Nifty 50 gainers on Monday, reflecting renewed buying interest.
Elara reiterates ‘buy’ call, sees upside potential ahead
Elara Capital has reiterated a ‘buy’ rating on InterGlobe Aviation, maintaining a positive medium- to long-term view on the stock. The brokerage has set a revised target price of ₹6,020, citing sustained domestic aviation demand, structurally constrained competitive supply and IndiGo’s strong position as the only airline with assured aircraft deliveries over the next four to five years.
According to Elara, while near-term operational disruptions and regulatory-led capacity rationalisation have prompted a moderation in growth estimates, these factors do not alter the airline’s long-term story.
The brokerage expects temporary issues such as pilot availability constraints to ease over the next few quarters, potentially supporting yields amid tighter industry capacity.
Outlook remains constructive
Analysts remain constructive on IndiGo’s ability to navigate near-term headwinds, aided by its scale, cost discipline and dominant market position. Expectations of stabilising costs, improving airfares due to capacity tightening and continued fleet expansion are seen as key drivers for the stock over the medium term.
With Monday’s sharp rise, IndiGo shares once again moved into focus as one of the key outperformers within the benchmark index.